I have this idea for a new board game wherein competitors, playing countries, have all sorts of options they can try each turn to devalue their currencies against one another. You win at the end when all paper currencies are worthless and people trade soy beans.
Until I can get Parker Brothers interested, here is Michael Cembalest of JP Morgan today on the real life version:
The broader issue is that Japan is yet another country pursuing a policy of effective currency debasement (US, UK, Switzerland, China and the rest of Asia). It is reminiscent in some ways (but not others) of the 1930’s, when Spain, the UK, Japan, the U.S. and France engaged in successive devaluations in exiting the gold standard. In the end, little was gained in terms of relative competitiveness, and the process served to heighten exchange rate uncertainties and raise political tensions.